Singapore climbs to sixth place in global resilient cities index

SINGAPORE climbed six notches to become the world’s sixth most resilient city, from 12th place in 2021. 

This is according to real estate consultancy Savills’ annual global index tracking the resilience of 490 cities across the world.

New York claimed the top spot for the second time in a row.

It was followed by Tokyo, London, Seoul and Los Angeles. 

The Resilient Cities Index, published on Monday (Mar 25), measures the resilience of a city based on its ability to support the well-being and success of its residents and workers against the backdrop of economic, social, environmental and technological changes. 

This makes these cities attractive to investors and occupiers, said Savills. 

A NEWSLETTER FOR YOU

Tuesday, 12 pm

Property Insights

Get an exclusive analysis of real estate and property news in Singapore and beyond.

Sign Up

Four core areas were examined: a city’s economic strength; its knowledge economy and technology; environmental, social and corporate governance (ESG); and real estate investment. 

For Singapore, an influx of people choosing to live and work in the city helped its climb, said Savills.

Prime residential rents rose by a significant 42 per cent between 2021 and 2023, as the city shifted from “recording new outflows of people to net inflows”.

Meanwhile, real estate investment volumes remained stable. “(This is) no mean feat amid broader economic uncertainty and a global slowdown,” noted Savills. “A competitive tech scene also puts Singapore in good stead for the future.”

For instance, venture capital investment grew from US$8.2 billion in 2021 to US$9.4 billion in 2023, despite an overall worldwide decrease in volumes. 

Alan Cheong, Savills Singapore’s executive director of research and consultancy, believes that Singapore’s ranking will improve further in the coming decade. 

This is thanks to the Urban Redevelopment Authority’s Master Plan 2025, which includes urban resilience as one of its key themes, he said. 

The city-state is likely to see a higher volume of investment deals in 2024 as buyers and sellers return to the market, said Jeremy Lake, Savills Singapore’s managing director of investment sales and capital markets. 

“Activity is expected across most asset classes with Singapore’s safe-haven status, political stability and resilient economy attracting more investor interest,” he pointed out.

Overall, Savills noted that there is a strong correlation between economic fundamentals and the resilience of a city. “In turn, real estate investors continue to focus on bigger cities, notably those with a deep and broad economic base,” it said. 

These cities are likely to see an inflection in the coming year as funding environments improve and real estate investment volumes begin to recover, said Savills. “However, with the impact of climate change and other ESG factors rising up the agenda, economic growth at the expense of everything else is increasingly being challenged.”